VA Awards $4.4M for Solar PV Construction to SAGE CONSTRUCTION GROUP LLC Under Full and Open Competition
Contract Overview
Contract Amount: $4,403,207 ($4.4M)
Contractor: Sage Construction Group LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2022-10-12
End Date: 2026-02-02
Contract Duration: 1,209 days
Daily Burn Rate: $3.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: SOLAR PV
Place of Performance
Location: KERRVILLE, KERR County, TEXAS, 78028
State: Texas Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $4.4 million to SAGE CONSTRUCTION GROUP LLC for work described as: SOLAR PV Key points: 1. Contract awarded for Solar PV infrastructure, a growing sector driven by renewable energy initiatives. 2. Competition was full and open after exclusion of sources, indicating a competitive bidding process. 3. The contract value of $4.4M is moderate for construction projects of this nature. 4. Risk appears manageable given the fixed-price contract type and defined scope.
Value Assessment
Rating: good
The contract value of $4.4M for Solar PV construction appears reasonable when benchmarked against similar projects. The firm fixed-price structure helps control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition after exclusion of sources, suggesting a robust price discovery process. This method typically yields competitive pricing.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary infrastructure.
Public Impact
Enhances renewable energy capacity for the VA. Supports infrastructure modernization within the Department of Veterans Affairs. Potential for long-term energy cost savings. Contributes to national renewable energy goals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if not managed tightly.
- Reliance on a single contractor for the duration.
- Supply chain disruptions for solar components.
Positive Signals
- Clear contract type (Firm Fixed Price).
- Competitive bidding process.
- Defined project duration.
- Located in Texas, a state with significant solar potential.
Sector Analysis
The construction sector, particularly for renewable energy infrastructure like Solar PV, is experiencing significant investment. This project aligns with broader trends in energy transition and government sustainability efforts.
Small Business Impact
The contract was awarded to SAGE CONSTRUCTION GROUP LLC. Further analysis would be needed to determine the extent of small business participation or subcontracting within this award.
Oversight & Accountability
The Department of Veterans Affairs is responsible for oversight. The firm fixed-price contract and defined end date provide clear accountability metrics.
Related Government Programs
- Power and Communication Line and Related Structures Construction
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for supply chain disruptions impacting solar component availability.
- Risk of unforeseen site conditions requiring additional funding or delays.
- Dependence on specific technology choices that may become outdated.
- Contractor performance risk, though mitigated by fixed-price contract.
Tags
power-and-communication-line-and-related, department-of-veterans-affairs, tx, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $4.4 million to SAGE CONSTRUCTION GROUP LLC. SOLAR PV
Who is the contractor on this award?
The obligated recipient is SAGE CONSTRUCTION GROUP LLC.
Which agency awarded this contract?
Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).
What is the total obligated amount?
The obligated amount is $4.4 million.
What is the period of performance?
Start: 2022-10-12. End: 2026-02-02.
What is the expected return on investment for this Solar PV project in terms of energy cost savings for the VA?
The provided data does not include specific projections for energy cost savings or a detailed return on investment analysis. A comprehensive assessment would require data on projected energy generation, current energy costs, and maintenance expenses over the system's lifespan. This information is crucial for evaluating the long-term financial value beyond the initial construction cost.
What are the specific risks associated with the 'exclusion of sources' clause in the competition method?
The 'exclusion of sources' clause, while still part of a 'full and open' competition, implies that certain potential bidders were initially excluded based on specific criteria. This could potentially limit the breadth of competition if the exclusion criteria were overly restrictive or not fully justified, potentially impacting the final price achieved and the range of innovative solutions considered.
How does the performance of SAGE CONSTRUCTION GROUP LLC on previous VA projects compare to industry benchmarks?
Assessing the effectiveness of SAGE CONSTRUCTION GROUP LLC requires access to their past performance data with the VA and potentially other government agencies. Benchmarking against industry standards for similar solar construction projects would involve evaluating metrics such as on-time completion, budget adherence, quality of work, and safety records. Without this historical performance data, a definitive judgment on effectiveness is not possible.
Industry Classification
NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction
Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SEALED BID
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 190 N MAIN STREET, BOUNTIFUL, UT, 84010
Business Categories: Category Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,403,207
Exercised Options: $4,403,207
Current Obligation: $4,403,207
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-10-12
Current End Date: 2026-02-02
Potential End Date: 2026-02-02 00:00:00
Last Modified: 2026-02-19
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